Market study of Coca Cola company

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Presentation transcript:

Market study of Coca Cola company Jumyeong Kim 11340696046 Xinyi Goh 11349086092

Contents Overview of Beverage industry and Non-alcohol business trend in the world and in China Coca Cola business model and brands and products The consumer value Coca Cola created and What can Coca Cola do to make clients happy and loyal Consumer market analysis of Coca Cola SWOT and Competitor analysis in China How to face the challenges in China C

Overview of Beverage Industry Non-alcohol Business Trend & Non-alcohol Business Trend in the World C

C Non-alcohol Soda Tea & Coffee Energy Drinks Fruits Juice Refrechin Everyone We Touch Beverages Non-alcohol Soda Tea & Coffee Energy Drinks Fruits Juice Alcoholic Beverages Drinking Water Enhanced Water Sports Drinks Milk Beverages

Oligopoly(intense competition) Limited growth opportunity Refrechin Everyone We Touch Beverages Non-alcohol Soda Tea & Coffee Energy Drinks Fruits Juice Alcoholic Beverages Drinking Water Enhanced Water Sports Drinks Milk Beverages Oligopoly(intense competition) Limited growth opportunity (endeavor to diversify offerings) Changing consumer tastes Volatile commodity costs

Historically dominated by Pepsi and Coca Cola Refrechin Everyone We Touch Beverages Non-alcohol Soda Tea & Coffee Energy Drinks Fruits Juice Alcoholic Beverages Drinking Water Enhanced Water Sports Drinks Milk Beverages Historically dominated by Pepsi and Coca Cola Distribute via sizable bottling subsidiaries Consumer preferences drive product diversification (growing awareness of health issues). Demand for bottled water, low-sugar drinks, RTD tea increases

Overview of Beverage Industry Non-alcohol Business Trend & Non-alcohol Business Trend in China C

Carbonated beverages : Tea beverages and fruit juice: Refrechin Everyone We Touch 1980s 1990s Early 2000 Present Future size of the industry will continue to expand Bottled water, tea drink, protein drink will increase rise of healthy drinks domestic beverage industry has a huge market-based enjoys a great room for growth Carbonated beverages : Coca Cola, Pepsi Bottled Water: Wahaha, Robust, Nongfu Tea beverages and fruit juice: Master Kong Uni-president

Nongfu Spring Master Kong Wahaha Uni-president Robust Nestle C Refrechin Everyone We Touch Beverages Non-alcohol Soda Tea & Coffee Energy Drinks Fruits Juice Alcoholic Beverages Drinking Water Enhanced Water Sports Drinks Milk Beverages Dominated by 6 brands Nongfu Spring Master Kong Wahaha Uni-president Robust Nestle

Growth is limited but large consumer base Refrechin Everyone We Touch Beverages Non-alcohol Soda Tea & Coffee Energy Drinks Fruits Juice Alcoholic Beverages Drinking Water Enhanced Water Sports Drinks Milk Beverages Growth is limited but large consumer base

Consumers’ need of natural, low sugar, healthy beverage Refrechin Everyone We Touch Beverages Non-alcohol Soda Tea & Coffee Energy Drinks Fruits Juice Alcoholic Beverages Drinking Water Enhanced Water Sports Drinks Milk Beverages Consumers’ need of natural, low sugar, healthy beverage Rapid growth

account for about 80% of the market share Refrechin Everyone We Touch Beverages Non-alcohol Soda Tea & Coffee Energy Drinks Fruits Juice Alcoholic Beverages Drinking Water Enhanced Water Sports Drinks Milk Beverages Dominated by 2 brands Master Kong Uni-president account for about 80% of the market share

Coca Cola business model & brands & products

Atlanta, Georgia Founded in 1892 Since 1886 Asa Griggs Candler  John Stith Pemberton C Refrechin Everyone We Touch

37% : Mexico, India, Brazil, Japan and China More than 500 brands in over 200 countries 43% : the United States 37% : Mexico, India, Brazil, Japan and China 20% : spread throughout the rest of the world Coca Cola refreshments owns its anchor bottler in North America Serves Over 1.7 billion drinks each days C Refrechin Everyone We Touch

Coca Cola Business Model Canvas Refrechin Everyone We Touch

C Value Proposition Quench thirst Cool down on hot days Get sugar Refrechin Everyone We Touch Value Proposition Quench thirst Cool down on hot days Get sugar Familiar Taste Feel one of the cool guys Happiness Uniquness (special feeling) For Distributors: Winning product Guaranteed to sell

C Customer Segments Mass Market Children Young Adults/Teens Refrechin Everyone We Touch Customer Segments Mass Market Children Young Adults/Teens All the rest Dep, Stores, Restaurants Larger retail outlets Vending machine operators Redistributors

C Refrechin Everyone We Touch Channels

C Customer Relationships Display Advertisement for customers Campaigns Refrechin Everyone We Touch Customer Relationships Display Advertisement for customers Campaigns

C Key Activities Production Bottling Marketing Distribution Refrechin Everyone We Touch Key Activities Production Bottling Marketing Distribution

C Key Partners Coca Cola Company Advertisement Agency Refrechin Everyone We Touch Key Partners Coca Cola Company Advertisement Agency Bottle Supplier/ Bottler

C Key Resources Bottling/Syrup Factory Distribution Center Refrechin Everyone We Touch Key Resources Bottling/Syrup Factory Distribution Center Employees(146,200)  Marketing Budget Franchise Contract

C Revenue Streams Retail Price Refrechin Everyone We Touch Revenue Streams Retail Price Fixed Pricing(Volume, product feature dependent)

C Cost Structure Marketing Bottling and Distribution Producing Syrup Refrechin Everyone We Touch Cost Structure Marketing Bottling and Distribution Producing Syrup Franchise Contract  

Coca Cola Brands & Products Refrechin Everyone We Touch

Refrechin Everyone We Touch

Refrechin Everyone We Touch

Refrechin Everyone We Touch

C The consumer value Coca Cola created & What Coca Cola do to make clients happy and loyal C

Feel one of the cool guys Quench Thirst Cool down on hot days Get sugar Healthy Feel one of the cool guys Uniqueness Happiness The consumer value

Refrechin Everyone We Touch

What Coca Cola do to make consumers happy and loyal Consumer-Centricity first beverage company to offer front-of-package labeling that states the number of calories in each can aligning their product offerings with the consumer’s growing search for healthy and green product solutions Familiarity Familiarity creates a sense of affinity between the customer and brand more exposure to Coca Cola by lots of advertisements and campaigns memory refreshment and positive association

How does Coca Cola analyze its consumer market?

C STP Segmentation Targeting Positioning C Refrechin Everyone We Touch

Segmentation Geographic segmentation Place of consumption Dividing the market Geographic segmentation Place of consumption Types of products bought by customers Demographic segmentation C

Geographic Segmentation To divide markets into different geographic units World Region or Country Region Population Density City or Metro Size Climate C

C Place of Consumption At home Cinemas Streets C

Types of products bought by customers Demographic Segmentation

Geographic Segmentation: Targeting Geographic Segmentation: Winter VS Summer C

The heath conscious segment of the market Targeting The heath conscious segment of the market C

Positioning Creating an identity in the minds of a target market Refreshing and Thirst Quenching Consistent and High Quality Happiness C

SWOT of Coca Cola C

SWOT Analysis C C Weaknesses Strengths - Very strong brand - Able to enjoy EOS - The Coca Cola system Weaknesses - Criticisms regarding health and environmental issues - Dropping sales in several countries Opportunities - Inorganic growth and acquisitions - Growing healthy drinks and bottled water Threats - Changing trends - Dependence on third party bottling partners C

SWOT Analysis C C Weaknesses Strengths - Very strong brand - Able to enjoy EOS - The Coca Cola system Weaknesses - Criticisms regarding health and environmental issues - Dropping sales in several countries Opportunities - Inorganic growth and acquisitions - Growing healthy drinks and bottled water Threats - Changing trends - Dependence on third party bottling partners C

SWOT Analysis C C Weaknesses Strengths - Very strong brand - Able to enjoy EOS - The Coca Cola system Weaknesses - Criticisms regarding health and environmental issues - Dropping sales in several countries Opportunities - Inorganic growth and acquisitions - Growing healthy drinks and bottled water Threats - Changing trends - Dependence on third party bottling partners C

SWOT Analysis C C Weaknesses Strengths - Very strong brand - Able to enjoy EOS - The Coca Cola system Weaknesses - Criticisms regarding health and environmental issues - Dropping sales in several countries Opportunities - Inorganic growth and acquisitions - Growing healthy drinks and bottled water Threats - Changing trends - Dependence on third party bottling partners C

Coca Cola’s Competitor Analysis in China

Master Kong Tingyi Holding Corporation Largest instant noodle producer 48.3% leading market share in RTD market 19.6% leading market share in bottled water market Second to Huiyuan in fruit juice market C

RTD Teas and Fruit Juices Coca Cola in Asia VS RTD Teas and Fruit Juices 24% Soda Less than 9% C

How does Coca Cola face its challenges in China?

C Advertising Adapt and Modify! Health Benefits C

C Refreshing Everyone We Touch Thank you